New Delhi, July 20 -- Profits from intraday trading and futures & options (F&O) trading are taxed differently from regular equity transactions in India. Under the income tax law, intraday trading is deemed speculative business income, while F&O gains are classified as non-speculative business income.

This classification has important implications for taxpayers as it impacts the applicable ITR form, filing deadline, tax treatment, and the rules governing loss set-off and carry forward.

Since both intraday and F&O trading are considered business income, a taxpayer must file ITR-3. However, taxpayers opting for the presumptive taxation scheme, subject to eligibility conditions, can file their returns using ITR-4 instead.

The due date for ...